India’s diamond exporters are bracing for a difficult year as demand from their main markets — the US and China — remains weak following economic slowdowns, according to the Gem & Jewellery Export Promotion Council.
The nation, which is the world’s top polishing hub, reported an almost 10% decline in cut and polished diamond exports to $22 billion in the financial year ended March, driven by inconsistent Russian rough-diamond supplies and softer demand in key global markets. Those challenges will prolong sluggishness in sales this year, said Vipul Shah, chairman of the state-backed industry group.
“It is going to be a difficult year,” Shah said in an interview with Bloomberg Television Wednesday. Elevated inflationary pressures in the US, China’s slower-than-expected recovery after pandemic restrictions lifted, and volatile gold prices will make it “tough and challenging” for Indian diamond merchants, he said.